This editorial should send chills down the spine of every foreign company in China

Expatriates distributing
masks to pedestrians to raise awareness of air pollution in
downtown Shanghai on January 24, 2013.REUTERS/Carlos Barria

In China, the media most often speaks for the state.

So when Xinhua publishes an
editorial telling foreign companies to "put their victim
mentality to rest ... and embrace new rules" on national security
that expand China's legal reach "to almost every aspect of public
life," you can bet this is coming straight from the top.

Here's some more:

"For decades, foreign investors have reaped handsome profits from
one of the world's fastest-growing economies while sitting on
cheap labor, generous consumers, and a 'super national treatment'
that includes hefty and exclusive tax breaks," it said.

"These have prompted many to feel entitled to favorable policies
while on Chinese soil, and to play the victim card in order to
continue to press for advantageous accommodations in the face of
rising labor costs and when authorities try to treat them as the
equals of domestic firms."

The editorial, which appeared in Xinhua on Tuesday morning, is
most likely a response to recent Chinese legislation that has
upset many in the technology sector. The law states that tech
companies must be "secure and controllable," and some believe
that could mean the Chinese government will want to examine
proprietary technology.

"Foreign companies are worried about what that's going to mean,"
said Adam Segal, a senior fellow at the Council on Foreign
Relations told
The New York Times last week. "Does it mean they have to give
access through backdoors, or are they going to have to partner
with Chinese firms?”

The logo of Google in
front of the company's former headquarters in Beijing, seen in
2011.Reuters

Who knows. Either way, it's clear the Chinese government does not
care about these concerns. President Xi Jinping is taking the
country through a transition called "the new normal." It means
lower growth but, hopefully, a more transparent and efficient
economy. The government is banking on the idea that foreign
companies want to be a part of that.

"In addition, as China continues to adjust its market economy,
equal treatment for domestic and foreign firms has become an
irreversible trend," the editorial said. "The lenient policies of
yesterday have worn out their usefulness, and foreign companies
should keep that in mind.

"Financial input from overseas and expertise in the process will
be welcome, and the restructuring also means new business
opportunities for foreign firms.

"But they should first abandon their victim complex and learn to
adapt to the new norms in order to continue to thrive."